2019 was Renewable Exchange’s first full trading year. The platform grew rapidly to 780 Generators and 1.2 GW’s of capacity tendering.
The key headline from 2019 is whilst the power market lost nearly £18 per MWh in value for April 2020 annual contracts across the year, there is still significant value for asset owners via PPA procurement. Predominantly this value is available via:
- Accurate and active timing of decisions
- Accessing a wider pool of suppliers.
- Generating increased market competition.
Renewable Exchange sees value spreads on the submissions on the exchange between £8 to £10 per MWh on average. Furthermore, many new creditworthy parties are entering the market to provide PPA’s in 2020.
The ability to contract with individual companies rapidly to respond to the price spikes detailed below in the graph is essential to support generators capturing additional value.
Values are £ additional revenues earned from the bottom and top of Spikes circled for indicative 5 MW solar farm and 1.5 MW wind farm.
In 2020, it is clear the market will remain volatile when taking consideration of macroeconomic global factors and UK specific challenges such as currency fluctuation and the decline of coal from the power generation stack.
The Renewable Exchange Platform price notification service has allowed asset owners to react and benefit to these opportunities in 2019, securing significant premiums via active PPA management.